Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: Jack Hydrazine

You have to understand how derivatives work.

If I bet you $10 that the Dow will go down tomorrow, that is a derivative based on billions of dollars in trading in Dow stocks.

However, the most I can win or lose is only $10.

Always look at the value at risk, not the notional value of the underlying assets.


28 posted on 07/05/2015 5:19:03 PM PDT by proxy_user
[ Post Reply | Private Reply | To 4 | View Replies ]


To: proxy_user

What is “notional value”?


29 posted on 07/05/2015 5:21:58 PM PDT by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
[ Post Reply | Private Reply | To 28 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson